IRS Announces Tax Refunds Up to $11,000 – Who Qualifies and How to Claim?

The 2024 tax season has officially begun, and millions of Americans are preparing to file their tax returns. The Internal Revenue Service (IRS) will be accepting and processing tax returns from January 27 to April 15, 2024.

While tax filing is primarily about reporting your income to the government, it also provides an opportunity to claim refundable tax credits that can significantly increase your refund. One of the most beneficial credits available is the Earned Income Tax Credit (EITC), which offers refunds of up to $8,000 for eligible taxpayers.

However, for some California residents, the refund can be even higher—exceeding $11,000—if they qualify for both the federal EITC and the California Earned Income Tax Credit (CalEITC).

Let’s break down the eligibility criteria, how to apply, and when you can expect your refund.

Who Can Get an IRS Refund of Over $11,000?

Not everyone qualifies for a refund of this size. The $11,000+ refund is available only to certain taxpayers who meet the eligibility criteria for both the federal Earned Income Tax Credit (EITC) and the California Earned Income Tax Credit (CalEITC).

According to Free Tax Prep LA, an organization that helps Californians with tax preparation, individuals with low to moderate income who are currently employed may qualify for these refundable credits. These credits are designed to provide financial relief to working individuals and families who earn a limited income.

What is the Earned Income Tax Credit (EITC)?

The Earned Income Tax Credit (EITC) is a federal tax benefit available to individuals and families with low to moderate incomes. It is designed to reduce the amount of tax owed and, in many cases, provide a cash refund.

EITC Eligibility Requirements:

To qualify for the EITC, you must:

• Have earned income from a job or self-employment.
• Have a valid Social Security number for yourself, your spouse, and any qualifying children.
• Be a U.S. citizen or a resident alien for the entire year.
• Not file Form 2555, which is for foreign-earned income.
• Have investment income below the limit set by the IRS (the limit changes yearly).

To claim the EITC, you must file a tax return using Form 1040 or Form 1040-SR (for seniors). If you have qualifying children, you must also submit Schedule EIC along with your tax return.

What is the California Earned Income Tax Credit (CalEITC)?

The California Earned Income Tax Credit (CalEITC) is a state-level tax credit designed to support low-income workers in California. This credit can provide extra cash back or reduce your tax liability by up to $3,644.

CalEITC Eligibility Requirements:

To qualify for CalEITC, you must:

• Be at least 18 years old or have a qualifying child.
• Have earned at least $1,000 in annual income but not more than $31,950.
• Have a valid Social Security number (SSN) or Individual Taxpayer Identification Number (ITIN) for yourself, your spouse, and any qualifying children.
• Live in California for more than half of the tax year.
• Not be claimed as a dependent by another taxpayer.

Additionally, California residents who qualify for CalEITC may also be eligible for other state benefits, such as the Young Child Tax Credit (YCTC) and the Foster Youth Tax Credit.

If you qualify for both EITC and CalEITC, you should claim them on your tax return to maximize your refund. The amount you receive depends on your income level and the number of qualifying children, with the highest possible refund reaching $11,474.

When Will You Receive Your IRS Tax Refund?

After filing your tax return, the IRS will process your claim and issue a refund. The time it takes to receive your refund depends on how you filed and whether you opted for direct deposit.

Refund Processing Timeline:

• If you chose direct deposit, the IRS usually issues refunds within 21 business days after processing your return.
• If you did not opt for direct deposit, your refund could take 6 to 12 weeks to arrive, depending on the method of payment and other factors.

To track your refund status, you can use the IRS “Where’s My Refund?” tool on their official website.

Maximize Your Tax Refund This Year

If you are eligible for both the EITC and CalEITC, make sure to claim them on your tax return. These tax credits can significantly increase your refund, providing much-needed financial relief.

To ensure that you don’t miss out, consider:
✅ Using a tax preparation service to help you file correctly.
✅ Checking your eligibility using the EITC and CalEITC calculators.
✅ Filing your tax return early to avoid delays.

By taking advantage of these tax credits, you could receive a refund of up to $11,474, helping you cover important expenses and improve your financial situation.

Conclusion

Maximizing your tax refund starts with claiming the EITC and CalEITC if you qualify. These credits can provide over $11,000 in refunds, offering crucial financial support. File your return early, use IRS tools, and seek professional help if needed to ensure you receive the full benefits this tax season.

This article has been carefully fact-checked by our editorial team to ensure accuracy and eliminate any misleading information. We are committed to maintaining the highest standards of integrity in our content.